Category Archives: Personal Finance

Here are a few little statistics that will either interest or irritate you. The UK newspaper the Sunday Times is releasing its annual yearly Rich List, a chart that lets the world know which UK citizens are the richest. Topping the musicians under 30 list, is none other than UK native and world favourite, Adele, with her estimated £20 million fortune.

Last year the Sunday Times Rich List only had Adele down as worth £6 million, but massive sales of her current album 21 (that is still selling well) have gained her another £14 million in the last 12 months alone. We’re hoping she has a secure Bullionvault , or at the very least a decent savings account for all that cash.

Her nearest competition in the chart are Cheryl Cole, Leona Lewis and Katie Melua, who are eight million below her at £12 million. Followed closely by Joss Stone at £10 million. Lily Allen, Natasha Bedingfield and Duffy round out the top ten with £6 million apiece.

MEXICO CITY – If you hire insurance for each of the hazards around you, it is likely that much of your salary payment ends in coverage, plus it might not be ‘so open to all claims. Since 2008, the Mexican Association of Insurance Institutions established a Committee on Microinsurance. These are instruments on where sums are insured and premiums are economically low. They can protect you an event such as a medical emergency, the death of a loved one, or unexpected events in your home or business.

To understand better, take a look at these key points:

1. This was born as a product aimed at people with lower incomes. However, for the facilities that can be offered, they are even to make payments if you can’t think of any.

For example, in Mexico, companies like Genworth and Argos offer tailored insurance. Genworth offers even a type of insurance called ‘Insurance Lifestyle Protection’, whose main objective is to give you peace of mind by helping you meet your financial commitments. This allows you to maintain a balance in your lifestyle.

2. In countries like Spain, this type of product is very common for insurance benefits that do not work directly with customers. They are designed to cover and offer financial partners such as banks, microfinance and financial arms of car dealerships.

3. The advantage for you as a customer is that if you apply for credit and have insurance, the institution that grants it acts as an insurer. And in case of death, the debts are not covered by your guarantor. Plus, you can even defer the payment of premiums using your credit card. This was explained by the National Commission for the Protection and Defense of Users of Financial Services.

4. The sums insured are also low, which makes the payment of claims is delayed less. In order to be included in the category of micro, the insured amount can not exceed four times the annual minimum wage.

Microinsurance can indeed be a tailored suit in forecasting. But, you must have a good understanding of the conditions in your contract. And remember: It is important that if you have life insurances and inform beneficiaries, so they can cash it in case something happens to you.

The biggest advantage you have is time: Even small movements bear fruit. Thanks to the power of compound interest. To begin, save at least enough to earn the equivalent of the retirement plan where you work, then set a goal to save between 12% and 15% of your income per year (including any equivalent salary). To reach this goal, adopts a culture of savings from day one.

2.) Be 100% independent

In a recent survey by the National Endowment for Financial Education (NEFE), 42% of those under age 40 reported receiving financial help from their parents in adulthood.

What is the problem with this well-intentioned aid? When considering your parents as a backup, you may have difficulty being financially independent.

“You will feel less responsibility to take steps to secure your future,” says Tim Maurer, co-author of The Ultimate Financial Plan.

Step 1: Create an emergency fund.

3.) Accept who you are

Research suggests that some individuals are saving, while others tend to be wasteful.

In the latter case, how learn to control and have good habits? Calculate what you need for retirement and making a budget can help you. “A key feature of successful savers is the desire to create a plan,” says the president of the NEFE, Ted Beck.

4.) Think about your future

A recent study in Journal of Marketing Research found that when young adults take altered photos of themselves so they look older, they are more willing to sacrifice today and save for the future.

In the absence of such technology, use your imagination.

5.) Change your perspective

During this time purchasing in your life, you may feel that everyone around you is accumulating more and faster. Donate to charity, even a small amount. It can help accurately perceive reality.

“It’s a great way to control our own sense of awareness of waste and our tendency to overspend,” says Maurer.

Stop being friends with anyone who makes fun of you because you usually eat at a folding table until you can save to buy a real dining room.

Two in five people are entering your ATM PIN that holds a piece of paper with your credit card and debit cards, and so many scams occur every day, says the National Commission for the Protection and Defense of Users of Financial Services.

Losing your wallet or forgetting your card at an ATM can happen at any time, but the risk of making use of your cards to make purchases and withdrawals reduced if your PIN is difficult to guess.

“An international survey prepared indicates that 21% of cardholders save or write down your PIN with the card, some even get to score in the magnetic stripe, making them vulnerable to fraud,” says the National Commission for the Protection and Defense of Users of Financial Services.

Only in 2011 for fraud related to credit cards, debit cards, checks and wire transfers cost 476 million pesos to the users of financial services is a considerable amount when you consider that in many cases of fraud are due to carelessness of cardholders.

To avoid being part of this statistic, the Condusef conducted a series of recommendations for the proper care of your PIN:

1. Do not share your Personal Identification Number (PIN) with anyone.

2. Memorize your PIN and not write it down on paper for easy identification.

3. Do not use a PIN that is easily identifiable or obvious data such as ‘1234 ‘or dates of birth. A word or significant date or your loved ones know can be a good option.

4. Do not use the same PIN for different cards.

5. Change your PIN at least once a year.

6. When you type your PIN at an ATM, cover with the other hand the keyboard to prevent anyone or any camera to access or view your PIN.

Finding an unauthorized charge on your credit or debit card can be a nightmare, however, know your rights as a user of a financial service and conditions of credit products can help you manage that the procedures are much faster clarification .
In 2011, the Condusef received 1.1 million requests for advice, of which about 200,000 were for disputes in 50% of cases were resolved in favor of users.

According to the National Commission for the Protection and Defense of Users of Financial Services (Condusef), a controversy over illegal charges has an average response of 20 days between 2007 and 2011, the bad practices of financial institutions identified from complaints from users fines generated 9.154 million pesos.

Lose the fear

As a user of financial services should take into account that there are different regulators of the banking and non-bank credit institutions (Sofoles and Sofomes) that extend credit and offer savings and Elvia Arcelia Quintana explains, a researcher at the Faculty of Law of the Universidad Nacional Autonoma de Mexico (UNAM).

The first instance is the Condusef, which should provide care and guidance when a user of financial services believe violated your rights, while the National Banking and Securities must regulate practices and ensure that institutions operating with adequate capital levels .

In a third instance also houses the Institute for the Protection of Bank Savings, which addresses the rights of banking institutions in bankruptcy and protect the savings of users up to an amount of 400,000 Units of Investment (UDI).

Fundamental rights

There are five key rights that users of financial services should be aware of this will depend, in the event of a dispute, you can get an idea of ​​how to proceed and what rules welcome you.

1. Statement

“The credit-granting institution is required to send the user a monthly statement detailing l as operations that were performed on a monthly , the customer must review and verify against their records if it is settled right, “said Elvia Arcelia Quintana.

The Condusef explains that in case of cloning, the information on the magnetic strips are used to duplicate the card to make purchases in your name in stores or online, so if you detect improper charges, the Commission recommends:

a) That if the difference between the estimates have balance and the balance that the bank tells you is small, verify consumption or withdrawals you have made to dismiss charges omitted through carelessness or confusion, or have not considered or saved for voucher or note of any transaction carried out.

b) In the event of failure to identify in a statement name, take into account that sometimes the merchant may have different brand name that you identify. Discard the first by date and / or quantity of the operation if this is not done ( by Example “XYZ Gourmet, SA de CV” that might correspond to the restaurant: “The Forest”).

If the balance that gives the bank, does not meet your estimated balance (not recognized by), you can present your case in the Special Unit for Attention to your bank users.

2. Right to information

The Universal Declaration of Users of Banking and Financial Services indicates that you are entitled to receive clear and accurate information about your accounts, thus, prohibiting acts of confusion and deception.

“In any case, the provision of financial services must comply with the requirements of good faith and those that ensure fair competition in the market, in the context of national and international legislation,” said international document.

In Mexico, financial institutions must have a special unit of care that should guide you in case you need information on how your accounts in interest fees and charges not recognized. You can consult the Directory of Specialized Care Units Users http://www.condusef.gob.mx/ or call 01 800 999 8080 to ask the data (name, address, phone, email) to submit your questions or controversy.

3. Rights in cases of unrecognized charges

The Bank of Mexico states that the issuing institution will be responsible for credit transactions that have been made ​​known during the 48 hours prior to the notice of loss or theft of a card. The transmitter must release the cardholder of the payment and pay the respective resources later than the fourth business day following receipt of the objection.

When the cardholder does not recognize a charge within 90 calendar days from the date on which it was made, the issuer must release the payment and pay the respective resources more than the fourth business day following receipt of the objection.

The foregoing shall not apply where the issuer proves that the transactions were authorized to trade using the CHIP card.

4. Rights in cases of unrecognized charges on transactions by phone or Internet:

When the cardholder does not recognize a charge within 90 calendar days from the date on which it was made ​​, the issuer must release the payment and pay the respective resources more than the fourth business day following receipt of the objection.

This shall not apply where the test station to the cardholder that such transactions are conducted using online authentication systems to ensure that the cardholder was the one who authorized them. (“Verified by Visa” or “MasterCard Secure Code”).

5. Right to keep unrecognized charges

Just as users are entitled to a refund, financial institutions may maintain the test charges when he was the cardholder who made the post. To this, must submit proof that the cardholder in mind the respective evidence.

The credit card users who are between 21 and 30 years of age are more likely to have a high level of indebtedness and results of a study on financial freedom from the U.S. firm PNC Financial Services Group.

Explains the document, the 60% ​​of cardholders are twentysomethings in more developed countries, (including Mexico) have a higher debt and lower savings capacity as they approach the age of 30.

The average debt of $45.000 reaches young people in countries and regions with more developed as the U.S. and Europe, while the levels in developing countries, $12.000 is the average balance on the cards.

Another alarming factor is that most people in their twenties postpones retirement savings until about the 30, with only 13% save for this purpose is voluntary.

This study is consistent with a survey by the Institute of Youth in Chile, which indicates that Latin Americans between 15 and 18 are vulnerable to over-indebtedness in the absence notions about the proper use of credit cards.

“One reason for the indebtedness has been the financial crisis, as the cards become the first choice of funding when a young man who recently became independent loses his job and not to rely on relatives for support, besides a large part of the credit card advertising and commercials are the people of this age range as a target audience,” says Shannon Johnson, director of checking and rewards consumers in PNC.

Bank of Mexico data indicate that the number of credit cards grew by 9% in 2011, going from 13.3 to 14.5 million plastics, of which only 40% are customers ‘totaleros’ that settle your balance from month to month, while 60% are people who pay interest on your purchases.

Avoid debt

PNC Financial Services Group developed a five-step guide to avoid losing control of your debt levels at any age.

1. Knowledge is power. Looking for information on money management and financial planning. Visit the website of your bank to avoid being left with no doubt as to interest and fees.

2. Take advantage of available tools . The young people have more management tools and online financial education and through its “smartphones”. There are applications that let you see all your accounts in one place, share tips, set a budget and set alerts to help manage money.

4. Create a safety net. Try to keep the money available to cover expenses for three to six months in a savings account as ‘safety net’. This account can help you avoid incurring more debt if they face an unexpected expense.

5. Think long term . Intended periodic contributions to a retirement plan is not necessary to hire an investment specialist and you can make voluntary contributions to your Afore.

MEXICO CITY – When you move house or decide to become independent costs arise as buying a new appliance, repairs or the need to buy a new car, and that not all productive during your life you may need to hire some credits to buy or renew your commodities.
Workers who have worked at least one year in companies affiliated with the National Fund for Workers Consumption (Infonacot) can apply for cash and credit card to make purchases of household items, holiday pay, tuition or to pay a car.

These financings have been given since 1974 when he founded the institution. According to the agency, the loans have lower interest rates on the market, plus they are granted without collateral and are paid on a deferred up to 36 months through savings via payroll.

How much can you borrow?

The Institute may lend up to four months of your salary, while for the type of auto loans can acquire vehicles whose value does not exceed $ 200,000 .

To be eligible for credit must be over 18 years and a permanent job with at least one year old in an affiliate, you can consult the directory Infonacot website or ask the human resources department of your company.

Credit is granted through a card issued by the Institute in cash or by transfer to your bank account.

In the first two months of 237.494 credits have been granted for an amount of 1.337 million pesos, these figures represent an increase of 90% and 85% respectively, compared to the same period in 2011.

What do I need?

To process it, you can go to an office Infonacot or, if you have your signature, you can make the online process.

The documents required are:

* Official photo ID

* Proof of residency recent month name to your current or immediate past.

* Last paycheck (not more than 15 days old) and contain your social security number.

If you apply the cash credit must present the latest status of a bank account in your name, where is the Key Bank (CLABE), the last statement of your payroll, or present the debit card physical copy of both sides, for you to have the deposit money.

Before going to Infonacot must fill the credit application available on the website and take Infonacot printed along with the credit agreement.

In this regard, the Condusef explained in late 2011 that the supply of bank loans payroll increased by about 27%, which has benefited from competition, but warned that taking the opportunity and withdraw 10,000 pesos from an ATM without taking into account how much you pay overall and how will impact your monthly budget can be a mistake that you subtract your margin to cover fixed obligations.

The Condusef recommends that regardless of whether it is a bank loan or credit Infonacot, you avoid monthly contract loans which exceed 10% of your income.

Greek crisis is moving rapidly to the worst solution. After partially announced bankruptcy last year, will probably total cessation of payments. Percentage cut debt increased from 20% to 50%, then 70% and already Greeks wonder whether it makes sense to pay something.

At first it was only to be cut private debts, but now threatens to leave Greeks with swollen lips even the European Central Bank. Peak of payments in March, and the Greeks explicitly threatening that they would not honor. Private accounts have already migrated 65 billion to the state remains in the clutches of bankruptcy bank nationalization or return to the drachma.